Syria is the biggest story for the markets right now, and America's good cop/bad cop routine leaves gold searching for direction. In an environment like this, it is critical to keep an eye—or two—on the levels.
Gold was able to hold $1,401 through several tests Thursday, then traders pressed the market to an initial low of $1,392.50 early Friday morning. We found gold hugging our $1,395.20 level for most of the morning, before better-than expected final reading from the Michigan Consumer Confidence report dropped the market down to $1,391.80.
We have seen a "buy the rumor, sell the fact" mentality take over the gold market following Secretary of State John Kerry's dramatic speech Monday, and after a great deal of hustle-and-bustle, gold now finds itself back where it closed out last week.
(Read more: With Syria strike looming, you need to own gold)
Major support will come in at our $1,383 to $1,384.10 level, and a close below that will be bearish. In fact, it would likely signal a consolidation to the next major support level at $1,352, as we head into the all-important September Federal Open Market Committee meeting.